How Long Does the Process of Claiming the ERC Take?

August 14, 2023
Dayes Law Firm

Introduced as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES), the ERC is a valuable tax credit that’s kept thousands of businesses afloat nationwide. If your business qualifies, you could claim up to $5,000 per employee for 2020 and $7,000 per worker per quarter for 2021.

Here is information if you are wondering how long the claim documentation will take to prepare or how long it may take to get a response from the IRS once the paperwork is filed.

When Should You Expect Your Credit?

Before a business can claim the ERC, you’ll need to:

  • Verify the eligibility
  • Make sure you have the right documents
  • Estimate your credit amounts
  • Submit your claim to the IRS

How long will the ERC claim take? This process can drag on, especially if you need time to calculate your gross receipts. You and your business partners (if you have any) will need to tally up all receipts for 2020 and 2021.

Once you’ve determined that you meet the gross receipts test (a drop of at least 50% for 2020 and 20% for 2021), you’ll need to gather documents, estimate your credit, and submit your claim. Expect this part of the process to take four to six weeks.

After submitting your claim to the IRS, the wait begins. You could possibly have your credit in six to eight weeks, but you may need to wait longer in some cases even up to or more than a year.

Why Does the ERC Refund Process Take So Long?

Your business isn’t the only one that’s waiting for the ERC. Thousands of other businesses have applied too so there is a backed-up waiting line.

You’ll need to send your amended employment tax return through the mail, which means there’s a chance that it may have become lost somewhere along the way. Unfortunately, if your claim never reached the IRS, you may need to send it to them again.

ERC scams have slowed down the process as well. Scam companies encourage businesses to apply for the ERC even if they don’t qualify, and it takes time for the IRS to figure out whether a claim is legit or not.

What To Do if Your ERC Is Delayed

If you’re still waiting on the ERC after several months, you can find out the status of your claim by calling the IRS Taxpayer Advocate Service

Due to lengthy backlogs, though, don’t expect an agent to answer you right away. You can leave a message, but the IRS says it could take up to two weeks for an agent to return your call.

When you speak to an agent or leave a message, be sure to provide your Employer ID Number (EIN), Social Security number, and tax return information so the IRS can look up your claim.

Dayes Law Firm Can Help You Track Down Your ERC Status

Still wondering, “How long will my ERC claim take?” If it’s been a few months and there’s no sign of your credit in the mail yet, reach out to Dayes Law Firm for help. And if you haven’t yet filed your amended tax return, we can also tell you whether you’re eligible and give you step-by-step instructions on how to apply.

Call Dayes Law Firm at (800) 503-2000 for a free consultation today.